In a significant move aimed at safeguarding national security, China has unveiled extensive new restrictions on rare earth exports. The adjustments come just before a highly anticipated meeting between President Xi and former President Trump, allowing China to leverage its rare earth supply as a strategic tool amid ongoing trade tensions. The new regulations specifically target users in defense and semiconductor industries, fueling concerns among tech giants about potential disruptions. Amid these developments, Chinese authorities have emphasized that foreign entities may be exploiting rare earth exports for military purposes, prompting stricter oversight. The measures have led to an increase in rare earth producer shares as the market responds to the tightened export controls.